Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aimia said it will receive approximately $492-million in net cash proceeds and an earn-out of about $25-million should the PLM loyalty program achieve certain targeted annual gross billings amounts by 2024.
Reconnaissance Energy Africa Ltd. (RECO-X) announced a $38.1-million bought deal financing. It has an agreement with Canaccord Genuity Corp., acting as lead underwriter and sole bookrunner, to buy six million units at $6.35 each.
Each unit will consist of one common share and one common share purchase warrant exercisable until Oct. 31, 2022 at an exercise price of $9.
ReconAfrica said it intends to use the net proceeds for drilling and seismic operations in the Kavango sedimentary basin and for working capital and general corporate purposes.
Sabina Gold & Silver Corp. (SBB-T) announced final documentation with Orion Mine Finance and Wheaton Precious Metals Corp. (WPM-T) for a US$520-million construction financing to fund the construction and development of the Goose Mine at its Back River Project in Nunavut.
The financing includes a US$225-million senior secured debt facility; a US$75-million gold prepay facility; a US$125-million gold stream arrangement; and a US$95-million private placement.
Equitable Bank, the wholly owned subsidiary of Equitable Group, said it’s buying Credit Union Central of Saskatchewan 84-per-cent common share equity interest in Concentra, as well as support agreements with additional Concentra shareholders representing a majority of the remaining 16 per cent.
Andrew Moor, CEO of Equitable, called it one of the “most important and consequential” transactions in the bank’s history adding that it “accelerates our growth plan by several years.”
Equitable said it will pay for a portion of the deal through a $200-million bought-deal financing. It will issue about 2.84 million subscription receipts for a price of $70.50 each to a syndicate of underwriters that includes Canada’s largest banks.
The company also increased the quarterly dividend by 51 per cent to 28 cents per common share and reported fourth-quarter financial results it said were “in line with medium-term guidance and were delivered with above-target growth in loans and deposits.”
Net income was $2.6-million or 3 cents per share versus $4-million or 5 cents a year ago.
Bragg Gaming Group (BRAG-T) announced that its full-year revenue and adjusted EBITDA have exceeded the company’s previously provided guidance. Bragg also raised its 2022 full-year revenue and adjusted EBITDA guidance, which it says now reflect year-over-year growth of 21 per cent and 43 per cent, respectively, versus a year ago.
Bragg said it expects to report fourth-quarter revenue of approximately US$17.6-million and adjusted EBITDA of approximately US$1.5-million. Analysts were expecting revenue of US$12.3-million for the quarter, according to S&P Capital IQ.
Enthusiast Gaming Holdings Inc. (EGLX-T) announced select preliminary unaudited financial results for its fourth quarter, including revenue of $56.9-million, which it says is a 34-per-cent increase from the year-ago quarter. The Street expectation was for revenue of $51.9-million.
Gross profit is expected to be $13.7-million, up 69 per cent from a year earlier. The company said it will release official results for the quarter and year-end on March 24.
Coveo Solutions Inc. (CVO-T) reported revenue of US$23.2-million for its fiscal third quarter ended Dec. 31, an increase of 39 per cent compared to US$16.8-million in the third quarter of fiscal 2021. The expectation was for revenue of US$21.8-million, according to S&P Capital IQ.
Net income was US$426.3-million or US$7.65 per share compared to a net loss of US$101.7-million or US$5.55 in the third quarter of fiscal 2021, the company stated.
Net income in the third quarter of fiscal 2022 was impacted by a non-cash gain of US$269.2-million and an associated income tax recovery of US$184.4-million, the company said. It said these are related to its preferred shares that were converted into multiple voting shares immediately before its initial public offering.
Auxly Cannabis Group Inc. (XLY-T) announced the closure of its Robinsons cultivation facilities located in Kentville and Hortonville, N.S. as it continues to focus its efforts on “streamlining and simplifying” its cultivation platform and reducing costs. Auxly said it’s part of a goal to become adjusted EBITDA positive by the first half of this year.
“This strategic decision comes after careful consideration in identifying opportunities for the company to optimize its vertically integrated platform and effectively reduce operating costs, while ensuring no material impact on its cultivation or processing capabilities and forecasted sales revenue,” it stated.
The company said it will focus on producing cannabis from its newly acquired large-scale greenhouse cultivation facility located in Leamington, Ont.
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